The managers of the Longleaf Small-Cap Fund, a component of the Bradway Strategic Portfolio, have released their second-quarter letter to shareholders. The fund returned 3.7 percent for the quarter, topping its benchmark, which lost 1.6 percent.
"Even though returns in 2011 have been positive, the price-to-value ratio has grown more attractive in each fund for three reasons: 1) we have sold and trimmed more fully priced names; 2) we have bought and added to holdings that were trading below 60 percent of appraisal; and 3) the value of most companies has grown," Staley Cates and Mason Hawkins wrote in their letter. "We believe the funds contain a great deal of compounding opportunity."
To read their full letter, click here.
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